Alcatel Buys PacketVideo Unit 597252

PARIS and SAN DIEGO -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the purchase of the Network Solutions unit of PacketVideo. This unit, mainly based in San Diego, California, has brought award winning video server technology to the mobile communications industry. PacketVideo Corporation, including its Device Solutions unit, is not part of the acquisition and will remain an independent company continuing to specialize in the development and integration of innovative multimedia software for mobile phone, videophone, camera and other device OEMs.

Recognized as a leader in multimedia technologies, PacketVideo was the first company in the world to demonstrate MPEG-4 video streaming to mobile devices, with standards-compliant and carrier-grade technology. With an established footprint among the leading multimedia content delivery solution providers in Europe, Asia and North America, such as NTT DoCoMo, T-Mobile, Orange, Mobilkom, New World Mobility and others, the Network Solutions unit of PacketVideo will strengthen Alcatel's offering for portals, application service providers, content aggregators and mobile operator customers, by enabling one-stop shopping for turnkey multimedia solutions.

"Video is all about sharing emotions. It's about seeing people face to face wherever you and they are, as well as accessing and sharing attractive video content in a ubiquitous manner. For this reason mobile video services are becoming more and more important to the entire mobile industry," says Etienne Fouques, President of mobile communications activities, member of the Alcatel Executive Committee. "The acquisition of PacketVideo's Network Solutions unit is a key step in strengthening our value proposition and solutions offering for our customers, who play a key role in expanding the market for data services."

Alcatel SA

PacketVideo Corp.